M/S. Leon Infrabuild Private Limited And Ors. vs. Union Of INDIA And Ors.
Original PDF →Facts
The petitioners, M/s. Leon Infrabuild Private Limited & Ors., filed a writ petition challenging an order of attachment dated July 11, 2024, issued by the Commissioner of CGST and CX, Kolkata South, under Section 83 of the CGST Act, 2017. The petitioners contended that a demat account is not amenable to attachment under the said provision. During the pendency of the writ petition, the impugned order of attachment became non-operative due to the expiry of one year from its date of issuance, as stipulated by Sub-Section (2) of Section 83 of the CGST Act, 2017.
Held
The Court noted that the impugned order of attachment, issued under Section 83 of the CGST Act, 2017, had become non-operative upon the expiry of one year from its date of issuance, which was July 11, 2024. This expiry occurred during the pendency of the writ petition. Consequently, the Court found that there was nothing further to be decided in relation to the operative effect of the attachment order. The ratio decidendi is that an attachment order under Section 83 of the CGST Act, 2017, automatically ceases to be effective after one year from its date, irrespective of the pendency of any challenge to its validity. The Court disposed of the writ petition by restraining the respondent authorities from giving any further effect to the attachment order dated July 11, 2024.
Key Issues
1. Whether a demat account can be subjected to attachment under Section 83 of the Central Goods and Services Tax (CGST) Act, 2017? Petitioner's contention: The petitioners argued that a demat account cannot be attached under Section 83 of the CGST Act, 2017. Revenue's contention: The judgment does not record any specific contention from the revenue or the respondent CGST authorities regarding the nature of a demat account or its attachability under Section 83. However, the issuance of the attachment order implies a stance that such an account is attachable. The revenue's primary argument, as reflected in the court's decision, centers on the statutory period of attachment. The judgment does not record any arguments from the State respondents.
Sections Cited
Section 83
AI-generated summary — verify with the full judgment below
2026 Ct. No. 237 Sl. No.298 skg
W.P.A. 21568 of 2024
M/s. Leon Infrabuild Private Limited & Ors. Vs. Union of India & Ors.
Mr. Debashis Ghosh, Mr. Lalit Baid, Ms. Saberi Saha, Ms. Kuldeep Das
….for the petitioners
Mr. Tanoy Chakraborty, Mr. Saptak Sanyal,
…for the State
Mr. Bhaskar Prosad Banerjee, Mr. Tapan Bhanja,
…for the respondent, CGST
This writ petition has been filed challenging the order of attachment issued by the Commissioner of CGST and CX, Kolkata South, dated July 11, 2024 under Section 83 of the Central Goods and Services Tax (CGST) Act, 2017. The order of attachment has been challenged, inter alia, on the ground that a demat account cannot be subjected to attachment under Section 83 of the CGST Act, 2017. However, it appears that, in view of Sub-Section (2) of Section 83 of the CGST Act, 2017, the impugned order of attachment has become non-operative upon the expiry of one year from the date of attachment during the pendency of this writ petition. In view of the above, nothing further remains to be decided.
2 Accordingly, WPA 21568 of 2024 is disposed of, restraining the respondent authorities from giving any further effect to the attachment order dated July 11, 2024. Urgent Photostat certified copy of this order, if applied for, be given to the parties upon compliance of all necessary formalities.
(Kausik Chanda, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.